LaDress
Climate Impact & Sustainability Data (2018, 2020)
Reporting Period: 2018
Environmental Metrics
ESG Focus Areas
- Responsible supply chain
- Sustainable products
- Empowered people
Environmental Achievements
- Italian Jersey Lycra produced in an eco-compatible way with energy saving, waste reduction and pollution abatement; PEF certified, OEKO-TEX and ISO 14001 certified, and has an "advanced" status with 4sustainability Chemical Management Protocol.
- Continuously looking for new eco-friendly fabrics.
- Switching to fully recycled polyester and recycled paper for all brand labels and hangtags.
Social Achievements
- Member of the Fair Wear Foundation (FWF) since 2014, adhering to their Code of Labor Practices.
- Support for the 'Because I am a Girl' campaign and Clothing4u.
- Addressing excessive overtime through outsourcing and improved order distribution.
Governance Achievements
- Signed the Dutch Agreement on Sustainable Garments and Textile (AGT) in 2016.
- Developed a sourcing manual and supplier manual with social compliance chapters.
- Implemented a grievance procedure with FWF Worker Information Sheet.
Climate Goals & Targets
Short-term Goals:
- By 2020, gain insight into at least 80% of the supply chain regarding wages paid and investigate if buying prices are sufficient to provide a living wage.
Environmental Challenges
- Difficulty meeting all FWF requirements in 2018 due to personnel changes and limited resources.
- Excessive overtime in 2016 due to a change in LaDress's buying strategy.
- Wage gap between minimum wage and living wage in production countries.
- Risks related to workplace safety and health, discrimination and gender, freedom of association, and excessive overtime.
- Risks associated with the use of raw materials, water pollution, and the use of chemicals, water, and energy in the production of substances.
Mitigation Strategies
- Developed an action plan to address 2018 FWF issues and work with FWF on improvement.
- Outsourcing part of the activities to an external party to reduce workload and improve order distribution.
- Investing in knowledge about living wage, attending workshops, and consulting stakeholders.
- Developing a long-term strategy to tackle the living wage issue.
- Implementing FWF Health & Safety Checklist, analyzing CAPs from audit reports, and discussing improvements with production locations.
- Analyzing the division between male and female employees and wages through FWF questionnaires and audits.
- Implementing FWF Worker Information Sheet and Workplace Education Program.
- Addressing excessive overtime risk in Portugal through audits and risk analysis.
- Seeking more sustainable alternatives to raw materials and switching to more sustainable raw materials such as recycled raw materials.
- Using a Restricted Substances List (RSL) in accordance with REACH standards.
Supply Chain Management
Responsible Procurement
- Sourcing exclusively from European suppliers and agencies.
- Using a Restricted Substances List (RSL) in accordance with REACH standards.
- Selecting ateliers based on authenticity, workmanship, expertise, and quality.
- Requiring information about working conditions and CSR policy from new production locations.
Climate-Related Risks & Opportunities
Reporting Standards
Frameworks Used: Fair Wear Foundation (FWF), Dutch Agreement on Sustainable Garments and Textile (AGT)
Certifications: PEF, OEKO-TEX, ISO 14001
Sustainable Products & Innovation
- Italian Jersey Lycra
Reporting Period: 2020
Environmental Metrics
ESG Focus Areas
- People
- Planet
Environmental Achievements
- Reduced online returns percentage by >10% in 2020 compared to 2019.
- Switched to eco-friendly shipping materials since 2019.
- Started using envelopes for small packages instead of boxes in 2020, reducing air transportation.
- Significant waste reduction due to cooperation with a new fulfillment partner in September 2020.
- Reduced cutting loss of fabric through efficient pattern layout (examples given: 21.7% reduction for Caroline and Siena, 28.3% for Caroline, 32.9% for Margaux and London).
Social Achievements
- Maintained orders at the main production location during the COVID-19 crisis, reducing redundancy risks.
- Improved worker safety at the main production location based on audit report recommendations.
- Strengthened and clarified CSR policy and integrated due diligence process.
- Regular contact with Modint for knowledge sharing with agents and production locations.
- Expanded supplier manual with more social compliance chapters.
- All action points from the 2019 audit report on worker health and safety were addressed (except for two minor points).
Governance Achievements
- Updated Restricted Substances List (RSL) in 2020 and received supplier confirmation.
- Signed the Fur-free declaration of ‘Bont voor Dieren’ and added to their Fur-free list.
- Added to PETA's list of pet-friendly brands.
Climate Goals & Targets
Short-term Goals:
- Increase CSR transparency by providing customers with simple and factual information on how products are made (website and newsletter updates).
- Gain more insight into the production chain of fabric suppliers.
- Agree with the main production location in Romania on updating 2019 audit information.
- Implement a user-friendly tool for monitoring due diligence.
Environmental Challenges
- Limited impact on most production locations and governmental policies as an independent small brand.
- Limited resources to constantly study and understand all industry risks.
- Lack of complete knowledge and visibility in the supply chain.
- High risk of discrimination and gender inequality in Pakistan and China.
- High risk of child labor in Pakistan.
- High risk of forced labor in China.
- Need for improved transparency and communication with stakeholders.
- Cumbersome due diligence administration.
Mitigation Strategies
- Working with a limited number of suppliers to maximize impact and build long-term relationships.
- Preferably working with production locations in the European Union (97% in 2020).
- Relying on agents and independent BSCI audit reports for production outside the EU.
- Accessing specialized resources, including Modint's CSR department and the Dutch Agreement on Sustainable Garments and Textile.
- Using detailed return information from the data warehouse to minimize returns.
- Using fabrics with stretch to improve fit and reduce returns.
- Improving website information (photos, size table, product descriptions) to reduce returns.
- Encouraging customer contact for size inquiries.
- Requiring audit reports before ordering and sharing country risk information with agents.
- Re-writing CSR policy and adding information to the website and newsletters.
- Planning to share the Plan van Aanpak on the website.
- Investigating the use of Tencel fabric.
- Investigating the origin of leather and exploring vegan leather options.
- Implementing a Workplace Education Programme (delayed from 2020-2021).
Supply Chain Management
Supplier Audits: BSCI audits conducted at production locations in high-risk countries.
Responsible Procurement
- Updated RSL (Restricted Substances List) in 2020.
- Commitment to long-term relationships with suppliers.
- Preference for EU-based suppliers.
Climate-Related Risks & Opportunities
Reporting Standards
Frameworks Used: Dutch Agreement on Sustainable Garments and Textile, OECD Guidelines for Multinational Enterprises, UNGPs